Arrow Electronics, Inc. (ARW - Free Report) recently announced that the company will acquire the ALTIMATE Group (ALTIMATE).
Powered by a network of approximately 2,500 value-added resellers and system integrators, ALTIMATE, a subsidiary of DCC plc., distributes enterprise and midrange computing products, services, and solutions in Europe. Employing 250 people, Arrow generated revenues of $298 million.
Operating across eight countries including France, Benelux, Iberia, and the United Kingdom, ALTIMATE has a broad product portfolio of hardware, storage, data management, security, and infrastructure solutions and services.
Arrow expects to close the acquisition in 90 days. Arrow expects the acquisition will broaden the company’s portfolio of value-added services and enterprise solution offerings. In addition, the acquisition will also strengthen Arrow’s relationships with important suppliers throughout Europe, Middle East and Asia.
Arrow Electronics had acquired Asset Recovery Corporation in February, in order to proliferate the company’s North American market share along with diversifying its services portfolio.
Asset Recovery provides a wide range of electronics asset disposition (EAD) services targets sales of $20 million in 2012.
Arrow earlier acquired Texas-based TechTurn, Ltd. Headquartered in Austin, Texas, TechTurn is an electronic asset disposition (EAD) services provider which possesses a broad portfolio catering to technology recovery, refurbishing and remarketing services which they globally offer, primarily to major Fortune 500 companies.
The acquisition appears to be a profitable one as TechTurn has been yielding favorable results of late with revenues to surpass $50 million approximately in 2012.
After Beijing-based Seed International Ltd., TechTurn is the next major acquisition executed by Arrow in recent times.
Competing with bigwig like Avnet, Inc. (AVT - Free Report) , Arrow will have to continuously broaden its product portfolio through acquisitions in order to retain its position in the global market.
We continue to maintain a Neutral recommendation on Arrow. However, we have a Zacks #2 Rank on the stock, which translates into a short-term rating of Buy.